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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 20, 2024
SR BANCORP, INC.
(Exact Name of Registrant as Specified in Charter)
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| Maryland |
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001-41808 |
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92-2601722 |
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(Commission
File No.) |
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(I.R.S. Employer
Identification No.) |
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| 220 West Union Avenue, Bound Brook, New Jersey |
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08805 |
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(Zip Code) |
Registrant’s telephone number, including area code: (732) 560-1700
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class |
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Trading
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Name of each exchange
on which registered |
| Common Stock, $0.01 par value |
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SRBK |
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The NASDAQ Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01 |
Regulation FD Disclosure |
SR Bancorp, Inc. (the “Company”) is furnishing the presentation materials presented at the 2024 Annual Meeting of Stockholders as Exhibit 99.1 to this report. The Company is not undertaking to update this presentation. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information herein (including Exhibit 99.1).
| Item 9.01 |
Financial Statements and Exhibits. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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SR Bancorp, Inc. |
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| DATE: November 20, 2024 |
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By: |
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/s/ William P. Taylor |
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William P. Taylor Chief Executive Officer |
Exhibit 99.1 Annual Shareholders’ Meeting November 20,
2024
Agenda • Call to Order – David M. Orbach, Executive Chairman
• Introduction of Directors and Senior Officers • Inspector of Election’s Report • Presentation of Proposals • Report to Shareholders • Vote Report • Adjournment Page 2
Business of Annual Shareholders Meeting 1. Election of Directors - Elect
three directors to serve until the 2027 annual meeting: • Mary E. Davey • Thomas Lupo • John W. Mooney 2. The approval of the SR Bancorp, Inc. 2024 Equity Incentive Plan 3. The ratification of the appointment of Baker Tilly US, LLP
to serve as the independent registered public accounting firm for the fiscal year ending June 30, 2025 Page 3
Overview of Somerset Regal Bank Somerset Regal Bank Offices Bound Brook
Raritan 220 West Union Ave. 802 Somerset St. Flemington Roseland 141 Broad St. 180 Eagle Rock Ave. Florham Park Somerville 30 Columbia Turnpike 64 West End Ave. Livingston Springfield 66 W Mt. Pleasant Ave. 899 Mountain Ave. Manville Whitehouse 41
South Main St. 410 Route 22 West Middlesex West Orange 1305 Bound Brook Rd. 641 Eagle Rock Ave. Milburn Somerset 290 Milburn Ave. 464B Elizabeth Ave. • Somerset Regal Bank is a New Jersey chartered commercial bank headquartered in Bound Brook.
Projected Median Projected Company Deposit Population HH HH Income • Operates 14 full-service branch locations in six Deposits Market Change Income Change counties in northern and central New Jersey. in Market Share 2024-2029 2024 2024-2029
County Rank Branches ($000) (%) (%) ($) (%) • Converted to the fully public structure on Somerset 10 5 353,133 2.00 2.27 132,529 6.44 Essex 16 4 222,445 0.78 1.02 73,032 8.44 September 19, 2023, raising $90.6 million. Hunterdon 13 2 127,326
2.12 1.52 129,123 5.75 Middlesex 31 1 66,354 0.14 1.67 106,162 7.79 • Following completion of the conversion and Union 27 1 24,823 0.10 1.01 96,357 9.72 stock offering, Regal Bancorp merged with and Morris 26 1 15,967 0.06 1.73 128,868 5.18
into SR Bancorp. Total 14 810,048 • SR Bancorp trades on NASDAQ under the New Jersey Franchise 1.71 112,315 7.07 symbol SRBK. State of New Jersey 1.50 96,278 7.35 National 2.40 75,874 10.12 Source: SNL Financial. Deposit information as of June
30, 2024. Page 4
Experienced Management Team William P. Taylor David M. Orbach
Christopher J. Pribula Chief Executive Officer Executive Chairman of SR Bancorp President & Chairman of Executive Vice Chairman of Somerset Chief Operating Officer Somerset Regal Bank Regal Bank 41 Years of 22 Years of 40 Years of Banking
Experience Banking Experience Banking Experience Employee Years of Since Experience James Castelletti, SVP, Senior Commercial Lending Officer 2023 25 Neil Viotto, SVP, Mortgage Lending 2011 28 Harris Faqueri, VP & CFO 2021 13 Dana DePace, SVP,
HR 1999 25 Chris Heffernan, SVP, Chief Credit Officer 2013 20 Tony Cuzzolino, SVP, Retail Banking Manager 1990 38 Page 5
Board of Directors Director Since Mary E. Davey 1995 Marc Lebovitz 2023
Thomas Lupo 2023 John W. Mooney 2011 David M. Orbach, Executive Chairman 2023 Christopher J. Pribula, President and Chief Operating Officer 2018 James R. Silkensen 2011 Douglas M. Sonier, Audit Committee Chairman 1986 William P. Taylor, Chief
Executive Officer 2007 Page 6
Financial Highlights Dollars in Thousands FY 2024 2025 FQ1 (except per
share amounts) Assets $1,020,844 $1,052,960 Net Loans $731,859 $767,717 Deposits $807,100 $819,384 1 $3,919 $1,367 Core Net Income 1 $0.57 $0.16 Core EPS 1 0.40% 0.13% Core ROAA 2 $18.02 $18.30 Tangible Book Value Per Share Noninterest Exp / Avg
Assets 3.51% 2.63% Non-Performing Assets $50 $9 Financial data for Somerset Regal Bank’s Fiscal Year Ended June 30 or for Somerset Regal Bank’s quarter ended September 30, 2024. Noninterest expenses include one-time merger expenses. 1)
Core net income for fiscal year ended June 30, 2024 is defined as net income less $4.4 million in one-time merger related expenses, $4.2 million provision for credit losses on acquired loan portfolio, $5.4 million charitable contribution to the
foundation and $4.5 million loss on the sale of AFS securities, tax affected. 2) Tangible book value per share is calculated based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by
total shares outstanding as of the periods indicated. Goodwill and core deposit intangibles were $28,141 and $27,755 at fiscal year end June 30, 2024 and FQ1 2025, respectively. Page 7
Financial Highlights – Total Assets • Assets grew
significantly from the merger with Regal Bank in September 2023 st • Strong loan growth fueled 1 quarter 2025 asset growth $1,053.0M $1,020.8M $651.5M $648.6M $639.4M 2021 2022 2023 2024 Q1 2025 Loans Receivable, Net Securities - AFS Cash and
Cash Equivalents Bank Owned Life Insurance Premises and Equipment, Net Securities - HTM Financial data for Somerset Savings Bank for 2021, 2022 and 2023 fiscal years and for Somerset Regal Bank for fiscal 2024 and for Somerset Regal Bank’s
quarter ended September 30, 2024. Page 8
Financial Highlights - Loans Loan Composition at 9/30/24 CRE
Concentration Consumer Mixed Use, Loans, 5.38% 1.52% SBA-C&I, Commercial Real 0.07% Non-Owner Estate, 11.51% Commercial Occupied, Loans, SBA-CRE, 46.55% 1.49% 0.51% Multi-Family, 27.45% Owner Occupied, 36.55% Multi-Family, 131.04% Residential
Mortgages, 52.06% Owner occupied and Non-Owner Occupied CRE as a % of Tier 1 Capital • Less than 1% of our commercial loans are office. • We have no NYC exposure! Page 9
Financial Highlights - Loans Allowance for Credit Losses / Gross Loans
NPLs / Gross Loans 0.71% 0.66% 0.09% 0.36% 0.33% 0.31% 0.01% 0.00% 0.00% 0.00% 0.00% 2021 2022 2023 2024 Q1 2025 2020 2021 2022 2023 2024 Q1 2025 NCOs / Avg. Loans 0.00% 0.00% 0.00% 0.00% 0.00% 2021 2022 2023 2024 Q1 2025 Financial data for Somerset
Savings Bank for 2021, 2022 and 2023 fiscal years and for Somerset Regal Bank for fiscal 2024 and for Somerset Regal Bank’s quarter ended September 30, 2024. Page 10
Financial Highlights – Deposits Deposit Trends at 9/30/24 Gross
Loans /Deposits Cost of 0.53% 1.63% 0.32% 0.46% 2.14% Deposits 94.31% $819.4M $807.1M 91.33% $510.0M $522.1M $503.9M 72.11% 64.30% 60.38% 2021 2022 2023 2024 Q1 2025 2021 2022 2023 2024 Q1 2025 Non-Interest Demand Deposits Interest-Bearing Deposits
Savings and Club Accounts Time Deposits Financial data for Somerset Savings Bank for 2021, 2022 and 2023 fiscal years and for Somerset Regal Bank for fiscal 2024 and for Somerset Regal Bank’s quarter ended September 30, 2024. Page
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Financial Highlights - Profitability Core ROAA* Core Net Income* $3,919
0.40% 0.31% 0.29% $1,995 $1,871 0.20% $1,367 $1,229 0.13% 2021 2022 2023 2024 Q1 2025 2021 2022 2023 2024 Q1 2025 Net Interest Margin Non Interest Expense / Avg Assets 3.51% 3.21% 2.63% 3.19% 2.03% 2.25% 1.70% 1.70% 1.95% 1.85% 2021 2022 2023 2024
Q1 2025 2021 2022 2023 2024 Q1 2025 Financial data for Somerset Savings Bank for 2021, 2022 and 2023 fiscal years and for Somerset Regal Bank for fiscal 2024 and for Somerset Regal Bank’s quarter ended September 30, 2024. Noninterest expenses
for the fiscal year ended June 30, 2024 include $4.4 million in one-time merger expenses. *Core net income for fiscal year ended June 30, 2024 is defined as net income less $4.4 million in one-time merger related expenses, $4.2 million provision for
Page 12 credit losses on acquired loan portfolio, $5.4 million charitable contribution to the foundation and $4.5 million loss on the sale of AFS securities, tax affected.
Creating Shareholder Value • On September 19, 2024, we adopted
our initial stock repurchase program since becoming a public company. Under the repurchase program we may repurchase up to 950,793 shares, or 10% of our current shares outstanding. 2021 2022 2023 2024 Q1 2025 Tier 1 Capital (to average total assets)
19.9% 19.4% 19.6% 16.8% 16.1% Equity / Total Assets 19.1% 18.2% 18.7% 19.5% 19.0% 1 19.1% 18.2% 18.7% 17.3% 16.9% Tangible Equity / Tangible Assets 2 - - - 9,507,930 9,441,642 Common Shares Outstanding Financial data for Somerset Savings Bank for
2021, 2022 and 2023 fiscal years and for Somerset Regal Bank for fiscal 2024 and for Somerset Regal Bank’s quarter ended September 30, 2024. 1) Tangible book value per share is calculated based on total stockholders’ equity, excluding
intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the periods indicated. Goodwill and core deposit intangibles were $28,141 and $27,755 at fiscal year end June 30, 2024 and FQ1 2025, respectively.
2) SR Bancorp, Inc. repurchased 66,288 shares at an average price of $11.11 during the 3 months ended September 30, 2024. Page 13
Overview of SR Bancorp, Inc. Stockholder Information (NASDAQ: SRBK)
Ownership Market Information as of 11/15/24 Institutional 22.2% Total Market Cap (mm) $104.6 1 Insider* 12.6% Tangible Book Value $172,789 Tangible Book Value / Share $18.30 Price / Tangible Book 61% Price / LTM EPS NM Ownership information based on
Proxy Statement and S&P Global Market Intelligence as of 9/30/24. Market information as of 11/15/24. *Includes 8.96% of the shares of common stock outstanding owned by the ESOP and the 401(k) Plan. 1) Tangible book value per share is calculated
based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the periods indicated. Goodwill and core deposit intangibles were $27,755 at FQ1 2025. Page
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Creating Shareholder Value Price ($) Volume Price Volume (shares 000's)
20.00 200 18.00 175 16.00 150 14.00 125 Since IPO – September 20, 2023 12.00 100 10.00 75 Price on 11/15/24 - $11.08 8.00 50 6.00 25 4.00 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% 9/19/23 11/3/23 12/18/23 2/1/24
3/17/24 5/1/24 6/15/24 7/30/24 9/13/24 10/28/24 SRBK (10.8%) Nasdaq Bank (55.1%) KBW Nasdaq Regional Bank (45.9%) S&P 500 (32.1%) Source: S&P Global Market Intelligence as of 11/15/24. Page 15
Questions and Answers
220 W. Union Avenue Bound Brook, NJ 08805
somersetsavings.com
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